Perfect Equipments v. DCIT

85 ITD 50Income Tax Appellate Tribunal2003#6727 most cited

What is Perfect Equipments v. DCIT authority for?

Under the mercantile system of accounting, expenditure is allowable as a deduction in the year to which it relates, even if the debit note is received in a later year. The Assessing Officer must consider alternative contentions for allowing the deduction in the correct year.

17

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2017 to 2023.

Also referred to as

Perfect Equipments v. DCIT · 85 ITD 50 · mercantile system of accounting · expenditure deduction · year to which it relates · debit note received later · business deduction allowance

Issues it is cited on

section 32(1)(i)section 43ainitial assessment yearenhanced compensationsection 80hsection 80hhcdeduction under section 80iainterest free advancessection 80hhsection 40a(2)(b)section 40a(2)disallowance of interest expenditure

Judgments citing Perfect Equipments v. DCIT

Usv P. Ltd., Mumbai vs. Dy CIT-C-5(2), Mumbai

In the result, appeal filed by the assessee and appeal filed by the revenue are partly allowed

ITA 891/MUM/2021[2018-19]Status: DisposedITAT Mumbai20 Jun 2023AY 2018-19

Bench: Shri S. Rifaur Rahman, Hon'Ble & Ms. Kavitha Rajagopal, Hon’Blem/S. Usv Private Limited V. Dcit, Central Circle- 5(2) Arvind Vitthal Gandhi Chowk 1908, 19Th Floor Govandi (East), Mumbai- 400088 Air India Building Nariman Point, Mumbai- 400021 Pan: Aaacu1366N (Appellant) (Respondent) Dcit, Central Circle- 5(2) V. M/S. Usv Private Limited 1908, 19Th Floor Arvind Vitthal Gandhi Chowk Air India Building, Nariman Point Govandi (East), Mumbai- 400088 Mumbai- 400021 Pan: Aaacu1366N

Section 132Section 132(4)Section 143(3)Section 245CSection 35Section 37Section 37(1)

…boratories was never a matter before the settlement commission and thus the Tribunal has power to adjudicate on the same. Ld. AR further submitted that the Assessee would also like to place reliance on the decision in case of Perfect Equipments v. DCIT 120031 85 ITD 50 (Ahmedabad - ITAT) Page No. | 47 ITA NO. 891 & 2573/MUM/2021 (A.Y: 2018-19) M/s. USV Private Limited wherein it is held that the Tribunal by virtue of powers vested upon it under provisions of section 254(1) for disposal of an appeal may pass such orders thereon as it thinks fit and only limitation on powers of Tribunal to give directions or find…

Global Consultants & Designers Pvt. Ltd., New Delhi vs. ITO Ward 11(4), New Delhi

The appeal is allowed

ITA 1424/DEL/2019[2015-16]Status: DisposedITAT Delhi25 Jan 2023AY 2015-16

Bench: Sh. Shamim Yahya & Sh. Anubhav Sharmaita No.1424/Del/2019, A.Y. 2015-16

Section 133(6)Section 143(2)Section 143(3)

…Limited v. CIT (SC) : 379 ITR 347 (SC) 11. J.K. Woollen Manufacturers v. CIT : 72 ITR 612 (SC) Re: Tribunal can give finding or direction in relation to other assessment year 12. JCIT v. Mukund Ltd. : 291 ITR 249 (AT) (Mum) 13. Perfect Equipments v. DCIT : 85 ITD 50 (Ahd.) 14. MMTC Limited v. ACIT : ITA No. 5147, 5166/Del/2016 (Del Trib.) ITA No. 1424.Del.2019 M/s. Global Consultants & Designers P. Ltd. 7 7.1. On the other hand, Ld. Sr. DR submitted that there is no error in the findings of Ld. Tax Authorities below. 8. Appreciating the matter on record, the bench is of considered opinion that the Ld. Ta…

Corrtech International Pvt.Ltd., Ahmedabad vs. The Dy.CIT., (OSD)Range-1, Ahmedabad

In the result, appeal of the Revenue is partly allowed and appeal of the assessee is partly allowed for statistical purposes

ITA 926/AHD/2012[2008-09]Status: DisposedITAT Ahmedabad11 May 2022AY 2008-09

Bench: Ms. Suchitra Kamble & Shri Bhagirath Mal Biyani

For Appellant: Shri Tushar Hemani, Sr. Advocate &For Respondent: Date of hearing
Section 14ASection 35DSection 36(1)(iii)Section 37(1)

…e Ld. A.R. alternatively made submission that if the impugned addition is upheld, direction may be given to reduce the gain of Rs.21,87,518/- offered in A.Y. 2007-08 from income of that year. The Ld. A.R. relied upon the decision of Perfect Equipment vs. DCIT 85 ITD 50 (Ahd). ITA Nos.926 & 1118/Ahd/2012 Assessment Year: 2008-09 Page 10 of 13 28. The Ld. D.R. relied upon the assessment order and the order of the CIT(A). 29. We have heard both the parties and perused all the relevant materials available on record. It is pertinent to note that the fact remains that the actual transaction of sales never took plac…

The ACIT, (OSD)Range-1, Ahmedabad vs. Corrtech International Pvt.Ltd., Ahmedabad

In the result, appeal of the Revenue is partly allowed and appeal of the assessee is partly allowed for statistical purposes

ITA 1118/AHD/2012[2008-09]Status: DisposedITAT Ahmedabad11 May 2022AY 2008-09

Bench: Ms. Suchitra Kamble & Shri Bhagirath Mal Biyani

For Appellant: Shri Tushar Hemani, Sr. Advocate &For Respondent: Date of hearing
Section 14ASection 35DSection 36(1)(iii)Section 37(1)

…e Ld. A.R. alternatively made submission that if the impugned addition is upheld, direction may be given to reduce the gain of Rs.21,87,518/- offered in A.Y. 2007-08 from income of that year. The Ld. A.R. relied upon the decision of Perfect Equipment vs. DCIT 85 ITD 50 (Ahd). ITA Nos.926 & 1118/Ahd/2012 Assessment Year: 2008-09 Page 10 of 13 28. The Ld. D.R. relied upon the assessment order and the order of the CIT(A). 29. We have heard both the parties and perused all the relevant materials available on record. It is pertinent to note that the fact remains that the actual transaction of sales never took plac…

Jindal Steel & Power Ltd., New Delhi vs. Addl. CIT, Haryana

In the result, the appeal filed by the Revenue for the Assessment Year 2008-09 is dismissed

ITA 4185/DEL/2011[2008-09]Status: DisposedITAT Delhi01 Dec 2021AY 2008-09

Bench: Shri Amit Shukla & Dr. B.R.R. Kumar(Through Video Conferencing)

For Appellant: Shri Salil Kapoor, AdvocateFor Respondent: Date of Hearing
Section 115JSection 143(3)Section 234BSection 80H

…ear under consideration. 66. Further, it has been stated that under mercantile system of account, deduction of any expenditure is allowable in the year to which the expenditure relates, as has been held in the following decision: • Perfect Equipments v. DCIT: 85 ITD 50 (Ahd.):- In that case, debit notes for commission issued by selling agent was received by assessee in assessment year 1991-92 but deduction was claimed in assessment year 1992-93. The assessing officer disallowed that claim without considering alternative contention of assessee that claim may otherwise be allowed for assessment year 1991-92. In the…

DCIT, Hisar vs. Jindal Steel & Power Ltd., Hisar

In the result, the appeal filed by the Revenue for the Assessment Year 2008-09 is dismissed

ITA 4067/DEL/2011[2008-09]Status: DisposedITAT Delhi01 Dec 2021AY 2008-09

Bench: Shri Amit Shukla & Dr. B.R.R. Kumar(Through Video Conferencing)

For Appellant: Shri Salil Kapoor, AdvocateFor Respondent: Date of Hearing
Section 115JSection 143(3)Section 234BSection 80H

…ear under consideration. 66. Further, it has been stated that under mercantile system of account, deduction of any expenditure is allowable in the year to which the expenditure relates, as has been held in the following decision: • Perfect Equipments v. DCIT: 85 ITD 50 (Ahd.):- In that case, debit notes for commission issued by selling agent was received by assessee in assessment year 1991-92 but deduction was claimed in assessment year 1992-93. The assessing officer disallowed that claim without considering alternative contention of assessee that claim may otherwise be allowed for assessment year 1991-92. In the…

Jindal Steel & Power Ltd., New Delhi vs. DCIT, Hisar

In the result, the appeal filed by the Revenue for the Assessment Year 2008-09 is dismissed

ITA 2280/DEL/2011[2007-08]Status: DisposedITAT Delhi01 Dec 2021AY 2007-08

Bench: Shri Amit Shukla & Dr. B.R.R. Kumar(Through Video Conferencing)

For Appellant: Shri Salil Kapoor, AdvocateFor Respondent: Date of Hearing
Section 115JSection 143(3)Section 234BSection 80H

…ear under consideration. 66. Further, it has been stated that under mercantile system of account, deduction of any expenditure is allowable in the year to which the expenditure relates, as has been held in the following decision: • Perfect Equipments v. DCIT: 85 ITD 50 (Ahd.):- In that case, debit notes for commission issued by selling agent was received by assessee in assessment year 1991-92 but deduction was claimed in assessment year 1992-93. The assessing officer disallowed that claim without considering alternative contention of assessee that claim may otherwise be allowed for assessment year 1991-92. In the…

ACIT, Hisar vs. Jindal Steel & Power Ltd., Hisar

In the result, the appeal filed by the Revenue for the Assessment Year 2008-09 is dismissed

ITA 2230/DEL/2011[2007-08]Status: DisposedITAT Delhi01 Dec 2021AY 2007-08

Bench: Shri Amit Shukla & Dr. B.R.R. Kumar(Through Video Conferencing)

For Appellant: Shri Salil Kapoor, AdvocateFor Respondent: Date of Hearing
Section 115JSection 143(3)Section 234BSection 80H

…ear under consideration. 66. Further, it has been stated that under mercantile system of account, deduction of any expenditure is allowable in the year to which the expenditure relates, as has been held in the following decision: • Perfect Equipments v. DCIT: 85 ITD 50 (Ahd.):- In that case, debit notes for commission issued by selling agent was received by assessee in assessment year 1991-92 but deduction was claimed in assessment year 1992-93. The assessing officer disallowed that claim without considering alternative contention of assessee that claim may otherwise be allowed for assessment year 1991-92. In the…

Jindal Steel & Power Ltd., Haryana vs. DCIT, Hisar

In the result, the appeal filed by the Revenue for the Assessment Year 2008-09 is dismissed

ITA 413/DEL/2010[2006-07]Status: DisposedITAT Delhi01 Dec 2021AY 2006-07

Bench: Shri Amit Shukla & Dr. B.R.R. Kumar(Through Video Conferencing)

For Appellant: Shri Salil Kapoor, AdvocateFor Respondent: Date of Hearing
Section 115JSection 143(3)Section 234BSection 80H

…ear under consideration. 66. Further, it has been stated that under mercantile system of account, deduction of any expenditure is allowable in the year to which the expenditure relates, as has been held in the following decision: • Perfect Equipments v. DCIT: 85 ITD 50 (Ahd.):- In that case, debit notes for commission issued by selling agent was received by assessee in assessment year 1991-92 but deduction was claimed in assessment year 1992-93. The assessing officer disallowed that claim without considering alternative contention of assessee that claim may otherwise be allowed for assessment year 1991-92. In the…

DCIT, Hisar vs. Jindal Steel & Power Ltd., Hisar

In the result, the appeal filed by the Revenue for the Assessment Year 2008-09 is dismissed

ITA 341/DEL/2010[2006-07]Status: DisposedITAT Delhi01 Dec 2021AY 2006-07

Bench: Shri Amit Shukla & Dr. B.R.R. Kumar(Through Video Conferencing)

For Appellant: Shri Salil Kapoor, AdvocateFor Respondent: Date of Hearing
Section 115JSection 143(3)Section 234BSection 80H

…ear under consideration. 66. Further, it has been stated that under mercantile system of account, deduction of any expenditure is allowable in the year to which the expenditure relates, as has been held in the following decision: • Perfect Equipments v. DCIT: 85 ITD 50 (Ahd.):- In that case, debit notes for commission issued by selling agent was received by assessee in assessment year 1991-92 but deduction was claimed in assessment year 1992-93. The assessing officer disallowed that claim without considering alternative contention of assessee that claim may otherwise be allowed for assessment year 1991-92. In the…

ACIT, Hisar vs. M/S Jindal Steel & Power Ltd., Hisar

In the result, the appeal filed by the Revenue for the Assessment Year 2008-09 is dismissed

ITA 220/DEL/2009[2003-04]Status: DisposedITAT Delhi01 Dec 2021AY 2003-04

Bench: Shri Amit Shukla & Dr. B.R.R. Kumar(Through Video Conferencing)

For Appellant: Shri Salil Kapoor, AdvocateFor Respondent: Date of Hearing
Section 115JSection 143(3)Section 234BSection 80H

…ear under consideration. 66. Further, it has been stated that under mercantile system of account, deduction of any expenditure is allowable in the year to which the expenditure relates, as has been held in the following decision: • Perfect Equipments v. DCIT: 85 ITD 50 (Ahd.):- In that case, debit notes for commission issued by selling agent was received by assessee in assessment year 1991-92 but deduction was claimed in assessment year 1992-93. The assessing officer disallowed that claim without considering alternative contention of assessee that claim may otherwise be allowed for assessment year 1991-92. In the…

Jindal Steel & Power Limited vs. Addl. CIT

In the result, the appeal filed by the Revenue for the Assessment Year 2008-09 is dismissed

ITA 167/DEL/2009[2003-04]Status: DisposedITAT Delhi01 Dec 2021AY 2003-04

Bench: Shri Amit Shukla & Dr. B.R.R. Kumar(Through Video Conferencing)

For Appellant: Shri Salil Kapoor, AdvocateFor Respondent: Date of Hearing
Section 115JSection 143(3)Section 234BSection 80H

…ear under consideration. 66. Further, it has been stated that under mercantile system of account, deduction of any expenditure is allowable in the year to which the expenditure relates, as has been held in the following decision: • Perfect Equipments v. DCIT: 85 ITD 50 (Ahd.):- In that case, debit notes for commission issued by selling agent was received by assessee in assessment year 1991-92 but deduction was claimed in assessment year 1992-93. The assessing officer disallowed that claim without considering alternative contention of assessee that claim may otherwise be allowed for assessment year 1991-92. In the…

Addlcit, New Delhi vs. M/S Mmtc Ltd., New Delhi

In the result, appeal filed by the assessee is partly allowed

ITA 5166/DEL/2016[2010-11]Status: DisposedITAT Delhi29 Sept 2021AY 2010-11

Bench: Ms Suchitra Kamble & Shri Prashant Maharishi(Through Video Conferencing) M/S. Mmtc Limited, Vs. Addl. Cit, Core: 1, Scope Complex – 7, Special Range : 6, Industrial Area, Lodhi Road, New Delhi. New Delhi – 110 003. Pan: Aaacm1433E & Addl. Cit, Vs. M/S. Mmtc Limited, Special Range : 6, Core: 1, Scope Complex – New Delhi. 7, Industrial Area, Lodhi Road, New Delhi – 110 003. Pan: Aaacm1433E (Appellants) (Respondents)

For Appellant: Shri Rohit Jain, Advocate; &For Respondent: Ms. Paramita M. Biswas
Section 14ASection 250Section 37(1)Section 43BSection 80G

…t year 2009 – 10, the learned authorised representative has referred to the special bench decision of joint Commissioner of income tax versus Mukand Ltd 291 ITR 249 (IT) as well as the decision of the coordinate bench in case of perfect equipments versus DCIT 85 ITD 50 (AHD), it has been held that the provisions of Section 153 (3) gives the power to the appellate authority lifting the bar of the time limitation for giving effect to the finding or direction contained in the order of the tribunal regarding bringing to tax the escaped income as well as the claim allowable in different year, we, respectfully followin…

Mmtc Ltd., New Delhi vs. Addl. CIT, New Delhi

In the result, appeal filed by the assessee is partly allowed

ITA 5147/DEL/2016[2010-11]Status: DisposedITAT Delhi29 Sept 2021AY 2010-11

Bench: Ms Suchitra Kamble & Shri Prashant Maharishi(Through Video Conferencing) M/S. Mmtc Limited, Vs. Addl. Cit, Core: 1, Scope Complex – 7, Special Range : 6, Industrial Area, Lodhi Road, New Delhi. New Delhi – 110 003. Pan: Aaacm1433E & Addl. Cit, Vs. M/S. Mmtc Limited, Special Range : 6, Core: 1, Scope Complex – New Delhi. 7, Industrial Area, Lodhi Road, New Delhi – 110 003. Pan: Aaacm1433E (Appellants) (Respondents)

For Appellant: Shri Rohit Jain, Advocate; &For Respondent: Ms. Paramita M. Biswas
Section 14ASection 250Section 37(1)Section 43BSection 80G

…t year 2009 – 10, the learned authorised representative has referred to the special bench decision of joint Commissioner of income tax versus Mukand Ltd 291 ITR 249 (IT) as well as the decision of the coordinate bench in case of perfect equipments versus DCIT 85 ITD 50 (AHD), it has been held that the provisions of Section 153 (3) gives the power to the appellate authority lifting the bar of the time limitation for giving effect to the finding or direction contained in the order of the tribunal regarding bringing to tax the escaped income as well as the claim allowable in different year, we, respectfully followin…

M/S. Uma Vir Infrastructure, Ahmedabad vs. The ACIT., Cent.Circle-1(1), Ahmedabad

In the result the appeal of the assessee is allowed for statistical purposes

ITA 1377/AHD/2013[2010-11]Status: DisposedITAT Ahmedabad01 Oct 2019AY 2010-11

Bench: Shri Mahavir Prasad & Shri Waseem Ahmedआयकर अपील सं./Ita No. 1377/Ahd/2013 "नधा"रण वष"/Asstt. Year: 2010-2011 Uma Vir Infrastructure The A.C.I.T 6, Vishwas Residency, Vs. Central Circle-1(1) B/H. Hitarth Partly Plot, Ahmedabad. Science City Road, Sola, Ahmedabad. Pan: Aanfm0042M

For Respondent: Shri O.P. Sharma, CIT. D.R

…in the case DCIT vs Standard Fire Works (Pvt.) Ltd. (2010) 128 TTJ 1 (Chennai) (T.M), DCIT (Spc. Range-u/s.271(1)(c) of the Act) Vs Oman International Bank, SAOG (2006) 100 ITD 285 (Mum.) (SB)/(2006) 102 TTJ260 (Mum.) (SB) and Perfect Equipment Vs DCIT (2003) 85 ITD 50 (Ahd). We have gone through the case referred by the appellant and also above finding, the AO is directed to give credit of the tax paid for capital gain shown by the assessee in AY 2007-08 in A.Y 2006-07. The assessee’s appeal on the this ground is allowed. In view of the above, we direct the AO to allow the credit of tax to the assessee after ve…

Analjit Singh, Delhi vs. DCIT, Circle- 16(2), Delhi

In the result, the appeal of the assessee is partly allowed

ITA 4737/DEL/2017[2014-15]Status: DisposedITAT Delhi01 Dec 2017AY 2014-15

Bench: Shri Amit Shukla & Shri O.P.Kant

Section 143(3)Section 2Section 50D

…ue direction for allowance for interest expenditure incurred during the AY 2013-14 against the option fee earned in that year and discussed under the head “other sources”:- JCIT v. HMA Udyog Limited: ITA No.2230/Del/1999 (Del); and Perfect Equipments v. DCIT: 85 ITD 50 (Ahm.) 75. Lastly, with regard to the reliance placed on the provisions of section 55(2)(aa)(iii), he submitted that it would be necessary to appreciate the legislative intent behind insertion of clause (aa) to section 55(2) by the Finance Act, 1994 w.e.f. 01.04.1995, prescribing the mode of computation of cost of acquisition in relation to certai…

M/S Canara Housing Development Company, Bangalore vs. JCIT, Bangalore

In the result, the appeal of the assessee is allowed

ITA 193/BANG/2014[2005-06]Status: DisposedITAT Bangalore12 May 2017AY 2005-06

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Rao

For Appellant: Shri Vijay Mehta & Shri R. Ramakrishnan, CAsFor Respondent: Ms. Neera Malhotra, CIT (DR) (ITAT)-2, Bengaluru
Section 143(3)

…rised Representative has further pointed out that the amount of compensation received by the other party has been accepted by the Assessing Officer. In support of his contention, he has relied upon the following decisions : (i) Perfect Equipments Vs. DCIT 85 ITD 50 (AHD). (ii) Ajay Devagan Vs. Addl. CIT in ITA No.514/Mum/2007 dt.9.10.2009. (iii) JCIT Vs. Mukund Limited 291 ITR (AT) 249 (Mum) (SB) 9. As regards the other reasons assigned by the Assessing Officer in disallowing the claim of the assessee, the learned Authorised Representative of the assessee has submitted that for claiming the deduction as a…

Perfect Equipments v. DCIT (85 ITD 50) — Cited in 17 Judgments | BharatTax